VIX lowest since Lehman fallout

One of the most talked about concept/measure throughout this crisis, at least for investors, is the volatility index or the VIX, which serve as the gauge of fear and well, volatility for them.  The good news is, the index has been down 37% for the year and 69% from its peak of 80.86 on November 20, 2008. The intraday high was recorded in October with 89.30.  The bad news is, it is still 26% higher from its historical average of 20.18. Nevertheless, the much improved position of the index points to the significant improvement we’ve had in the markets, although it does not mean we’re already out of the woods.

From Bloomberg:

Above-average volatility shows traders are still paying up for insurance to protect against losses in the Standard & Poor’s 500 Index. More gains depend on investors overcoming the remaining skepticism, sometimes called the “wall of worry,” spurred by last year’s 38 percent slump in the equity index, the steepest since 1937.

The rest from Bloomberg.

Here’s a 52-week chart of the VIX from CNBC:

vix630

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